One of the few Internet stocks that had a strong showing on Thursday was Exodus Communications (Nasdaq: EXDS), which provides Web server hosting and management for e-commerce sites such as Nordstrom.com.
Shares of Exodus climbed 4-1/2 to 132-5/8 one day after the company announced second quarter revenues of $42.5 million, a 41 percent increase over the first quarter of 1999 and a 322 percent increase of the second quarter of 1998. Exodus also announced that it had added 327 new customers in the second quarter.
Overall, the company lost 51 cents a share, which was right in line with analysts’ expectations. The company also announced a 2-for-1 stock split.
Investors seem to be encouraged by Exodus’ growth. Profits are hard to come by for e-commerce retailers, but it looks like there isn’t going to be any shortage of customers for infrastructure companies like Exodus.